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DisplaySearch is reporting in the first quarter of 2012 approximately 27% of TVs shipped worldwide had internet connectivity. The highest shipments of smart TVs was to Japan where 46% of TVs had network connectivity, followed by Western Europe with 36% and closely behind China with 32%.

“Connected TV is largely driven by content,” said Paul Gray, Director of TV Electronics Research for NPD DisplaySearch. “Where there are compelling things to watch, the internet becomes a major source of entertainment. We are now seeing a second stage of evolution as internet video relocates from a PC screen onto the TV screen. In particular, Chinese consumers have found plenty to watch on the internet, so internet connectivity follows.”